OVL Eyes Viedocon's Mozambique Gas Field Stake

Indian’s ONGC Videsh (OVL) is looking to buy Videocon Industries' 10% stake in Mozambique's Rovuma offshore block. The Economic Times in a report said that a due diligence exercise to evaluate reserves and other financial and commercial details of the gas fields will begin.

Sources told the business daily that at least six bidders have expressed initial interest. They are Shell, ExxonMobil, BP, Repsol, Sinopec and OVL which may team up with Oil India to form an Indian consortium.

Thailand's state-owned PTT Exploration and Production Public Company Limited (PTTEP), which owns 8.5% stake in the field, may also bid to increase its economic interest, ET said. 

Videocon’s stake sale could close to $2.5 billion. "On a comparative valuation with Cove, Videocon's 10% interest should have a $2.15 billion - $2.25 billion valuation, but Videocon's promoters are seeking a significant premium of almost $2.7 billion to $3 billion," said an official briefed on the matter.

Last year, PTTEP inked a deal worth $1.91-billion with Cove Energy.